Fidelis Insurance (FIHL) Q1 2025 earnings summary

Executive summary

• Achieved 14% year-over-year top-line growth in Q1 2025, with gross premiums written rising to $1.72 billion, driven by strong retention and new business across insurance and reinsurance segments.

• Net loss of $42.5 million, or $(0.38) per diluted share, compared to net income of $81.2 million in Q1 2024, due to significant catastrophe losses from California wildfires.

• Maintained a diversified, short-tail risk portfolio with no casualty exposure, supporting resilience amid global volatility.

• Continued strategic capital management, including $41.5 million in share repurchases year-to-date and ongoing dividend payments.

• Advanced de-risking of Russia-Ukraine aviation litigation, with 80% of exposure settled or in settlement discussions.

Financial highlights

• Combined ratio deteriorated to 115.6% from 85.8% year-over-year, reflecting $333 million in catastrophe and large losses, mainly from California wildfires.

• Net investment income increased to $50 million from $41 million year-over-year.

• Net favorable prior-year development of $41 million, with $33 million from reinsurance and $8 million from insurance.

• Net premiums written increased 32% and net premiums earned rose 24% versus Q1 2024.

• Book value per diluted common share was $21.54 at March 31, 2025.

Outlook and guidance

• Confident in achieving approximately 10% growth in gross premiums written for 2025.

• Combined ratio target remains in the mid to high 80s through the cycle, supporting 13%-15% ROE.

• Management expects an attractive trading environment and aims to capitalize on profitable underwriting opportunities, optimize margins, and create long-term value.